Just wanted to help out those who were unsure how the cap worked and how it affects the Lakers, so here we go.
THE BASICS:
1. This years salary cap is 55.630 mil.
2. The luxury tax level is 67.8653 mil.
3. Every year the salary cap and luxury tax levels are readjusted.
WHAT THAT MEANS:
1. The cap is a soft cap meaning you can exceed the 55.630 limit under certain "exceptions" which will be detailed later. But for the most part once you've exceeded the cap you cannot sign a free agent to whatever amount you want, you can only sign free agents under "exceptions"
2. Once a team exceeds the tax threshold, that team will pay a $1 per $1 tax that will be shared equally among the non-taxed teams.
HOW IT AFFECTS THE LAKERS:
This year the Lakers have a payroll of 68.404 mil so they cannot sign free agents except with exceptions. Furthermore they will pay a $538,700 luxury tax to the league.
Next season the Lakers have committed 61.631 mil to payroll and again will most likely be over the cap and unable to sign free agents except under exceptions.
EXCEPTIONS
1. Mid Level (set at 5.35 for 2007-2008)
2. Bi Annual (about 1.8 for 2007-2008)
3. Rookie
4. Larry Bird
5. Early Bird
6. Non-Bird
7. Minimum Salary
WHAT THEY MEAN:
1. A team can sign a player equal to the average salary in the NBA even if they are over the cap or that amount would put the team over the cap. This can be given to one player or split among several players.
2. A team can sign a player for 1.8 mil. again it can be used on one player or split among players. You cannot use this exception two years in a row.
3. A team can sign their 1st round picks to the rookie salary scale even if they are over the cap.
4. This allows teams to resign their own players who have been with that team at least 3 years up to the maximum contract even if they are over the cap. Contracts can be for up to 6 years
5. similar to the Larry Bird this one requires 2 years of service to the same team. The team can then pay a maximum of 175% of last years contract to that player or the average NBA salary, whichever is greater. Contracts can be for up to 5 years.
6. Players who played at least one season with the team can be resigned at 120% of last years salary or 120% of the league min, whichever is greater
7. A team can sign any player at min if they are over the cap. Contracts cannot exceed 2 years.
HOW IT AFFECTS THE LAKERS:
1. Last season the Lakers where over the cap and could not offer any free agent more then the mid level approx 5.35 mil. They used it all one player, Vlad Radmonivic. Next Season they will again be over the cap and will not be able to offer any free agent more than the approx 5.35 mil amount.
2. They did not use this exception this season so it will be available to them next season.
3. The Lakers will always be able to sign their 1st round picks like Farmar and J-Critt even if they are over the cap.
4. Andrew Bynum will qualify for the Bird exception next season and will be able to increase his salary from 2.7 mil up to the maximum NBA allowed of 9 mil for his years of service even if the Lakers are over the cap. I believe the Lakers have a 2.7 mil option for next year and will most likely use it, so Bynum will have to wait one more year for his big payday.
5. Turiaf may qualify for this since he has played two seasons with the Lakers, but he only played half a season last year due to his surgery. Lets assume for the moment he will qualify it means that they can increase his salary from $770,000 to 1.35 mil when resigning him.
6. Coby Karl fits this exception and can be resigned up to $528,000 up from his $440,00 this season.
7. The Lakers will be able to sign any player at minimum salary next season.

OTHER NOTES:
Exceptions cannont be combined, so you cant add the biannual and mid level amounts to give to one player. Once your over the cap you can pretty much forget about signing a big money player. you'd have to work a sign and trade deal, but thats for another post ;)